Category: Workflow

13 Ways an Accountant Can Help a Small Business Owner

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There are two huge mistakes that many start-ups or small business owners make. The first one is trying to manage their own accounting system. This is often done incorrectly which can hurt the business in the long-term. The second mistake is assuming that an accountant is only good for managing accounts and filing Tax or VAT returns.
An accountant is a financial guru and an all-around business advisor all in one. Accountants are an incredibly valuable member of any small business team as they can offer a lot more than just accounting to small business owners. Here are 13 ways accountants can help:

1) They can help you go from business idea to start up

They will give you advice on what you need to create the foundation for a successful business e.g. determining the best business structure, creating your business plan, opening a business bank account etc.

2) They can assist with the financial analysis in your business plan

They can also help with loan applications and forecasting.

3) They analyse your finances to determine where your business’ money is going

They can then advise you on where to make improvements in your processes and cash flow so your business can scale and grow.

4) They will explain your financial data so you can make financial decisions with confidence

A good accountant will break it down so you understand the ins and outs of your business at all times.

5) They close out your books and create end-of-year financial reports

With your reports, an accountant will recommend changes to budgets or forecasts.

6) They compile and submit your taxes and financial reports to HMRC and Companies House

As well as submitting, they can also calculate VAT, provide advice on estimated tax payments, and provide guidance.

7) They make sure that your accounting procedures comply with government regulations.

Legislation changes all the time. An accountant keeps up to date with these so they can check your company’s tax position and keep you compliant.

8) They oversee your company payroll and payment process

They can help you streamline your business processes to work smarter, not harder.

9) They can help you streamline your business processes to work smarter, not harder

They can provide advice on the type of accounting software that’s suitable for your business, how to track your expenses, and also invoicing and payroll. More time means more earning potential!

10) They can identify risks in financial transactions to prevent fraud

Many business owners want to identify investment opportunities too. An accountant can provide advice on this and check whether an investment is solid.

11) They can help you identify areas for growth in your business as well as ways to save money

By looking at cash flow patterns, inventory management, your pricing, business financing.

12) They will work with you to create a business budget and stay on track

Every business owner needs a budget to support their business goals. An accountant can actively help with this.

13) They can advise you on all the big things

Reports, taxes, audits, business strategy, you name it and they can probably help you with it. Need advice on property or equipment leasing and purchase? Need guidance or resources to assist with scaling the business? Guess who can help – Accountants!

Accountants are key to business success, wherever you are on your business journey

These are just some of the ways that accountants can work with you to support your business. Whether you’re launching a start-up, you’re a small business owner who needs help with running the business day-to-day or you’re wanting to really scale your business, an accountant can provide essential advice and guidance, every step of the way.

7 ways to have the right mindset for growth during a recession

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A fixed mindset is thinking that the recession means business stops and clients don’t want to spend money.
A growth mindset is using this recession as an opportunity to adapt and do things differently.
You bees the second mindset if you want to grow your firm doing the recession.
The only thing holding you and your firm back from growing right now is you. To help you move your practice forward, both now during the pandemic and during any future recessions, here are 7 mindset shifts you need to make.

1) Make peace with your reality

Suffering is what happens when you resist what is already happening. The sooner you confront the current reality and accept it, the quicker you can move past it.

2) Hold yourself accountable

If you want to grow, you need to think of the acronym R.O.A.D. You need to take Responsibility for the choices you’ve made, you need to take Ownership of where you want to go, you need to start taking Action, and you need to be Decisive. When making your strategy plan, be 100% accountable for putting it into action.

3) Don’t compare yourself to others

Some businesses are struggling, others are thriving. Don’t compare yourself to either. Every business owner, firm, and situation is different, so don’t disrupt your focus with doubt.

4) Prioritise delivering value

Concentrate on delivering exceptional service to your current clients. How can you offer extra value during this time? This will make you invaluable and it will ensure that you stand out from your competitors.

5) Focus on your strengths, not your ‘failures’

What work are you good at? What do you love to do the most? Which clients are your favourites to work with? Being positive during this time is essential, so focus on what you love and reflect on your principles and values. Rediscovering why you do what you do is very powerful when it comes to self-motivation and drive.

6) Fail fast and achieve quickly

Inaction is the worst thing you can do, not trying something and failing. During a time of such change, don’t procrastinate and don’t be a perfectionist. Take action, fail fast, learn from your mistakes, and concentrate on getting there first (not doing it perfectly and getting there last).

7) Be grateful and become self-aware

Practice gratitude every day by thinking about what you are grateful for both now and in your future. Also, take time to reflect and to rediscover your purpose. If you’re confident and happy, you will attract similar clients.

Adapt AND adopt

We have all had to adapt to some degree during the pandemic, for example, being forced to adapt to working from home. Changes such as these are necessary to our ‘survival’ during this time.
With that being said, however, it is the accountants who have both adapted and adopted changes of their own, who have thrived. These are the individuals who make quick and effective decisions, who take responsibility for changing their situation, and who take action.
Anyone can grow their firm during a recession, they just have to have the right mindset.

6 key changes businesses should have made over the past 2 years

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The pandemic has been transformative in many ways. It has changed how we view our health, how we communicate and, of course, how we run our businesses. Whilst we certainly wouldn’t want to do it again, it has taught us a lot of valuable lessons. In light of the lesson we’ve learnt, we thought we’d share 6 key changes we believe all businesses should have made since the pandemic:

1) Hybrid Working

Before the pandemic hybrid working was a lot less common, however this is no longer the case. Recent studies have shown that 76% of companies have adopted a hybrid working model since the pandemic because it has proven to be so effective!
Employees are more productive, more engaged and generally happier when provided the opportunity to choose their work environment. Your employees and your profit margin will thank you for adopting a more flexible working model!

2) Internal Communications

Learning to navigate a business in social isolation has really highlighted the importance of effective communication, not only between team members but between firm owners and partners too.
We made sure to have daily zoom meetings with the whole team throughout the pandemic so that we all had a chance to see and talk to each other, even if there was nothing particular to report. Without these open streams of communication we would not have been able to adapt our businesses, engage our teams or maintain operations during the Covid-19 crisis.
Therefore, you must continue to prioritise and invest in your internal communications. After all, if the pandemic has taught us anything, it’s that effective communication is a valuable commodity.

3) Digital Processes

Working from home forced us to adapt in more ways than one. However, the most notable difference has been the global shift towards virtual working and digital processes.
Adopting cloud-based software has innumerable advantages, but perhaps the most noteworthy is its ability to increase efficiency. In a recent survey, 48% of respondents agreed that cloud computing increased their efficiency thanks to cloud automation and broad network access.
So, if you haven’t already, do yourself a favour and start streamlining your processes by using a digital payment process and introducing automation tools to your workflow.

4) Advisory Services

If guiding our clients through the pandemic has shown us anything, it’s that our advice is both valuable and scalable. Developing your advisory services is something you need to make sure you are doing.
Offering tailored advice can be a simple way to utilise your expertise, enhance client relations and increase revenue. So don’t limit yourself to debits and credits – expand your services by offering relevant business advice!

5) Outsourcing

In a time when we had to adapt quickly many businesses had to outsource labour and resources to operate, and that continues to be the case. Labour shortages have forced us to seriously evaluate what we can and can not deliver in-house.
Yet, despite the great resignation and the global pandemic we’ve come to find there are actually many benefits to outsourcing.
Outsourcing can improve revenue, increase efficiency, and reduce operational costs. What’s more, it enables you to delegate tasks outside of your expertise, allowing you to channel your energy into what you do best. Don’t be afraid to ask for help as you’ll need it if you want to scale your business.

6) Refined client base

They say that every cloud has a silver lining. Whilst the pandemic did present us with many hardships, it also allowed us to take a good look at our client base.
If you’re yet to do so, we highly recommend reviewing your client base as well. Who are your high-value clients? Which clients drain your resources? The aim is to identify which clients you can afford to let go in order to save yourself both time and money.
Although culling clients is never easy, refining your client profile can be extremely beneficial if done respectfully. This will help you make space for more clients that fit your ideal client profile!

Future-proof your business

Unfortunately Covid-19 won’t be the last challenge we face. There will always be another bump in the road or another fire to put out. By implementing these suggestions you have the ability to streamline your business, optimise your performance and keep up with your competitors, all of which are essential when preparing your firm for the future.
Try not to be despondent when times get tough. Remember, challenges are also opportunities for growth and innovation.

How automation can improve your efficiency and productivity

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Automation was already on the rise pre-pandemic, but now it has become a business priority. The positive benefits of automation pay dividends for those businesses that invest in it. Many business owners don’t know that accountants can offer a lot of assistance in this area: streamlining and automating processes to improve business efficiency, so here are the many benefits.

1) Automation reduces the time spent on repetitive tasks and the risk of human error.

Expenses is an area that is notoriously labour-intensive, time-consuming for staff to submit and finance departments to process, and it’s extremely prone to human error. The same goes for invoicing and purchase order processing. However, with a streamlined and automated workflow, the whole process is connected through a single system from start to finish. This means it’s a lot quicker and, therefore, cheaper (less time is wasted, and the risk of manual input errors are eliminated), and skilled staff can now spend their time on higher-value tasks.

2) Automation results in better credit control.

Late payments are one of the biggest causes of stress for business owners, not to mention it has a huge negative impact on cash flow. With the use of digital payment process, however, late payments can be greatly reduced. Automation makes it easier and faster for businesses to chase payments; it increases the chances of invoices being paid on time, and it saves 15 hours on average per week on credit control management.

3) Automation gives you accurate real-time reporting.

Knowing your numbers is crucial for business success. However, it is both time-consuming and expensive to have your staff monitoring every KPI and to have to trawl through all the data. With automation, however, you have the ability to see your overall business performance at any given time. With real-time financial reports, you can then accurately budget and forecast cash flow and make effective business decisions.

4) Automation increases both client and staff satisfaction.

Contrary to what people believe, automation does not take away from human interaction. In fact, it does the opposite. Speeding up and streamlining business processes means that your staff have more time and energy to better serve your clients. It gives them the time and means to respond to needs and nurture stronger client relationships.

As well as improving customer service, automation also leads to higher employee engagement. Your staff will no longer have to concern themselves with paperwork or mindlessly boring manual tasks. They will now be free to focus on higher-level, more rewarding tasks such as spending more time with clients to understand their goals and how the business can help deliver those. Satisfied and engaged staff will directly contribute to growing your business so this is a very important benefit of automation.

5) Automation improves productivity and the bottom line.

Streamlining processes means that staff and the business as a whole work more effectively and efficiently. This time can then be spent on the higher-value tasks that will increase revenue. As well as enhancing workflow, automation can also help solve the current talent shortage as employees can be better trained and developed on the job.

Save time and money with automation

Too often, business owners spend too much time working in the business rather than on it. However, with automation, employees can be relieved from these day-to-day menial tasks to focus on what will directly grow the business.

As well as increasing efficiency and productivity, automation can save you a lot of time and money by eliminating errors and reducing staffing and credit control costs. So, if you want to streamline your business, don’t hesitate to reach out!

How accountants can make you look good

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When you as a business owner think of an accountant, you think of taxes, financial reporting, or loan applications. While this is all correct, it is just the beginning!

Accountants may be the frontrunners when it comes to your finances, but we can offer so much more than that. One of our most valuable offerings is making you look good!

Here are some ways that accountants can help you with your image:

1) They help you look professional 

Accountants can help you manage your accounts, budget smartly, and fix your cash flow, all of which are the foundations of a successful business. They can also help you to automate your business and work more efficiently.

For example, automating your invoicing system so you no longer need to chase unpaid invoices or reconcile payments manually. Not only does this save you a lot of time and free you up to focus on other areas of your business, but it also makes you look professional to your clients as they can see that you’re on top of your processes.

2) They help you remain competitive

One of the most common mistakes that business owners make is that they become too chargeable. I.e., they are not charging enough for their services. While this may bring in more business initially, in the long term, it will start choking your business growth.

By pricing correctly, you can let go of the clients who are not paying enough or who don’t align with the direction of your business. Once you start pricing what you’re worth, you’ll soon see that you will attract the right types of clients – the ones who support your growth and overall goal.

3) They help you look & feel confident

With an accountant by your side, you will be able to walk the walk as well as talk the talk. You will be making smarter business decisions such as increasing your capacity by outsourcing working rather than hiring a full-time employee, and you will have the figures you need at your fingertips. Figures that will give you, your clients, and any other third-party peace of mind.

4) They help to reassure your clients

If your business grows suddenly and takes on more clients, some of your existing clients may be worried that you can’t handle this growth, or they worry that they will become less important to you. To reassure your clients that you’re growing sustainably, an accountant can help you forecast the future and outline your business strategy. They can help you make necessary changes now so that you’re prepared for any growing pains.

Invest in your image 

A good impression of your brand is incredibly important, so invest in an accountant to make sure that you give off a positive one. From helping your business run smarter, to outlining the future for your business, an accountant can help you to reassure yourself and your clients that you will sustain value and growth for the foreseeable future.

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7 Ways an Accountant Can Save You Money

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In today’s competitive business world, it is not uncommon for people to do their own bookkeeping and accounting. There are many reasons why this is done – the most common being that you can save money doing so. Of course, saving a couple of hundred pounds is an enticing prospect, but there are actually many more ways in which hiring the services of one will help you make money instead. Here are 7 ways an accountant can save you money:

1) They free up your time

Time IS money, so the more time you free up doing your bookkeeping, taxes, and financial statements, the more time you can dedicate to the tasks that will actually generate money for your business.

Not to mention that it will take you a lot longer to do all your finances than a professional anyway. Why would you waste your time when you could be doing what you do best and what you actually enjoy?

2) They help you be more tax-efficient

Accountants can help you save money by being more tax-efficient. This means claiming what you can, obtaining loans if you are entitled to financial support, and maximising the tax deductions you are entitled to.

3) They help you avoid fines and penalties

You need to file your taxes correctly and you need to do this on time. With legislation changing all the time, this isn’t easy, and you could be leaving yourself vulnerable to penalties and charges, simply because you didn’t know.

By hiring an accountant, you can always be reassured that you’re filing on time and that your taxes are correct. You can have peace of mind that you won’t get a surprise letter from HMRC and you don’t even have to deal with them at all if you don’t want to.

4) They identify opportunities for growth

Accountants keep your records up-to-date so you will always know the figures of your business. At a glance, you’ll be able to see how you’re performing, what’s coming in and what’s going out, and also your liquidity.

There is power in data! For example, your accountant can help you ascertain how long you could survive if there was a recession, where you can cut down expenses to save money, and where you should be delegating most of your budget if you want to grow.

5) They assist in gaining funding

It takes a lot of time to secure financing from banks and as we said previously, time is money. Your accountant can help you secure loans and financing really easily from creating a business plan and helping you budget to applying and assisting you in the loan process.

6) They advise on investments

If you’re interested in investing, an accountant can help you understand different investment options. From stocks and money markets to real estate and investment vehicles, they can show you how you can grow your money and which opportunities are the best for you and your business.

7) They offer invaluable business advice

As well as accountancy, accountants can offer business guidance to help you increase your chances of success. They can help you build a business from the ground up; they can help you with goal setting and planning, budgeting and forecasting, and pricing to increase your profit margin. This isn’t even everything that’s included in their advisory services so make sure to take advantage of their knowledge.

Spend money to make money

While you can save a couple of hundred pounds doing your own books, you won’t save as much with an accountant and you could actually end up losing a lot more. With an accountant on your team, you can save both time and money while having the reassurance and peace of mind that you’re making sound business decisions for your future.

why should I switch to a digital payment process

Why should I switch to a digital payment process?

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According to studies, SMEs spend on average, a whopping £4.4 billion per annum chasing late payments. This problem is only exacerbated by traditional (and slow!) payment methods too such as cash and cheques, so what is the solution to this?

To reduce the time between invoicing and the money actually clearing into your accounts receivables – thereby minimising the negative impact on your cash flow – small and medium businesses should consider switching to digital payment. Here’s why.

6 benefits of switching to a digital payment process

1 . Consistent cash flow

Digital payments mean a faster processing time which results in a much faster cash conversion cycle. This means no more big gaps in cash flow due to late payments.

2 . Lower processing costs

Switching to digital means lower payment processing fees than standard bank transfers. As there’s no need for manual reconciliation, labour costs are also reduced.

3 . Greater visibility of your finances in real-time

Businesses that use a digital payment process always have their accounts receivables in real-time. This allows them to refine their credit control processes and make informed strategic decisions.

4. Quicker reconciliation

Digital payments don’t take days to reconcile, they show up on your accounts receivable almost instantly. The result? Better documentation and more time for your staff to focus on the high-value stuff instead.

5. Happier clients

Going digital benefits your clients too as it gives them the widest and most convenient range of payment options to choose from. Making it quick and easy for your clients to pay makes them happy and it builds loyal relationships too!

6. Security compliant

The vast majority of software providers abide by the Payment Card Industry Data Security Standard (PCI DSS). This means all business and client data can be processed securely.

Wave goodbye to late payments

Payment delays can build and threaten the future of your company. To avoid potentially irreparable damage, implement digital payments sooner rather than later. Not only will this balance out your monthly cash flow and reduce manual work and extra costs, but it will also improve your client journey and most likely ensure repeat business.

 

accountant with laptop

15 things you didn’t know an accountant could do

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When asked “What does an accountant do?” many people answer with accounts, tax or compliance work. While that’s true, what many don’t know, is that the good ones do so much more. The best accountants will become a part of your team; they will give you strategic advice to save money and boost revenue, they will help you work more efficiently, and they will not only help you plan for your future, but they will help you get there.

To better answer the question, “What does an accountant do?” here is a taster of what they offer to you and your business.

Things an accountant can do…

  1. Launch a start-up

You need to know that your idea will make money and may potentially need to convince investors of the same thing. An accountant can do that for you plus work out your start-up and operating costs and create credible revenue forecasts.

  1. Manage your cash flow

Getting a stable and consistent cash flow is every business owner’s dream. An accountant can make sure that you always have the money there to pay staff and suppliers, as well as cash reserves in case of an emergency.

  1. Help make you more tax-efficient

Everyone knows that an accountant can help you complete and submit your returns at the end of the tax year. What many don’t know is that they can also help you to lower your tax ethically as well as helping you deal with old tax debts and making sure your books are watertight if you’re audited.

  1. Manage your debt

What loan should you choose? Should you use spare cash to pay back loans or reinvest in the business? An accountant can help you develop a specific strategy to manage debt in a way that is best for your business.

  1. Chase unpaid invoices

An accountant takes the ‘chasing money’ headache away from you by setting up an automated invoice system. When a payment is due or overdue, this will send out automatic reminders to your clients until they pay. Some accountants will even call clients who are very overdue with payments.

  1. Improve your business strategy

Yes, your accountant can help you figure out where you want to go and what’s important. They will work with you to set realistic personal, professional, and financial goals, and then they will measure your progress to help you achieve them.

  1. Budgeting and forecasting

Working off a vague set of numbers can result in irreparable damage to a business. With an accountant, you can work to an exact budget where you know exactly what is coming in and going out, and how much money you have to reinvest, and all in real-time. As well as having the figures at your fingertips, you will also know your figures that you’re aiming for and how long you could last in a crisis.

  1. Writing and pitching loan applications

Applying for a loan is a tedious and difficult process, but not with an accountant. They can pull together your numbers to help you write a solid application, not to mention give you the forecasting figures that will win over any loan officer.

  1. Help you with recruitment and payroll

Should you hire a full-time employee or outsource? Will your bottom line benefit more from a salesperson or a technician? Can you afford to hire and train a new employee? All these questions are important and should be handled with confidence. An accountant can help you make the best choices for you and your business and make payroll easy.

  1. Set up your cloud accounting software

Accountants aren’t stuffy number crunchers who speak a different language, they are tech-savvy and future-driven. Using the best tools out there, good accountants can help you automate your business’s accounting so that you’re always on top of your finances wherever you are. As well as implementing this software in your business, they can also train you to use it confidently.

  1. Help your business run more efficiently

In addition to accounting software, accountants can also help you unlock the power of other applications so that you can start working smarter, not harder. They can help you increase productivity with your invoicing, payroll, customer relationship management, staff scheduling and time-recording etc, and integrate all these tools together to create an effortless workflow.

  1. Improve your inventory management

Many business owners don’t realise how much money is lost due to poor inventory management. What an accountant can do is help you identify the cost of holding inventory and how much revenue is lost, so you can start to place accurate (and cost-effective) orders.

  1. Help you plan for the future

Do you want to sell your business in the future? Do you have a succession plan? Do you want to retire early? All these questions need to be addressed and planned for early on in your business journey. As well as helping you develop a plan for the future, an accountant will keep this larger goal in mind and will help you stay on track.

  1. Listen and support you

A good accountant will become an essential part of your team. They will be your financial advisor for all aspects of your life and will be there to listen and support you whenever you need them (not just appear in your life at the end of the tax year).

  1. Give you peace of mind

Your business, your finances, and the welfare of you and your family are probably the three most important things in your life. An accountant can help ease this pressure, giving you the reassurance and confidence that everything is being done or is planned for. The result? Peace of mind and being able to sleep soundly.

Laptop with flowers

12 ways to increase profit margins (and thrive in business)

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Your profit margin is how much money you actually get to walk away with after a transaction is complete (revenue – costs = profit). It makes sense then, that businesses who want to grow, focus on increasing this margin. The bigger the margin you have, the more you will thrive and be able to power through challenges like the economic climate that we find ourselves in today.

So how do you do it? How do you increase your profit and master your margins?

  1. Identify what is not working – before you can fix something, you need to know what’s broken. Take an objective look at your business and your processes and identify the gaps.
  2. Streamline your processes – the faster you can provide a service, the faster you can generate revenue and increase your profit margin. Where can you speed up your processes to trim costs without impacting quality? I.e using cloud accounting software.
  3. Discover any areas where there is waste – where does your business spend money? Are you losing money through inefficiency or waste? Can you reduce your expenses?
  4. Market those higher-end services – what services sell best and deliver the highest profit? Prioritise these in your marketing and focus your efforts on pushing these more.
  5. Aim for incremental growth – try not to get ahead of yourself. Set yourself small goals and you’ll find that you’ll make consistent, and more importantly, sustainable progress.
  6. Focus on building your team – a happy, motivated, and productive team, one that supports your growth goals, can make a world of difference to your profit margin.
  7. Be innovative in your strategy – if the pandemic has taught us anything, it’s how to strategically innovate our service. What are you not offering your target audience that they really need? What can you replace in the service that you’re offering now?
  8. Cross-promote to increase your credibility – if you get a good response from running webinars or writing content, think about ways you can cross-promote with someone influential in certain topics. Not only does this increase your credibility, but it capitalises on the other person’s time, money, and resources too.
  9. Identify other pillars for revenue – is there a service that brings in the majority of your revenue? If there is, try to see what other areas you can focus on to build another revenue-generating pillar. You don’t want your strategy to be dependent on a single pillar (what if that pillar fell down?). Your aim should be to strengthen another area or two and this will increase your margin too.
  10. Create a loyalty programme with your clients – your clients know, like, and trust you, and they are your best advocates. They are your free sales team, so help them spend more with you and tell others about your services. How can you create a loyalty programme to reward them?
  11. Raise your fees – if you haven’t had a rate increase recently, you have an easy way of increasing your profit! Just make sure to approach this right, conveying your increase in value rather than your profit margin.
  12. Outsource certain tasks – a great way of increasing your profit margin is to outsource some lower-value tasks to freelancers or contracted workers. You can use them only when demand is high or part-time.
money

10 ways to improve your business cash flow

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For a business to grow sustainably (and to successfully make it through the financial bumps in the road), cash flow needs to be a priority. And not just when times are tough and cash is tight. Making sure that you’re maintaining an optimal level of cash on hand at all times; this is essential to success.

So how do you do this? To improve your cash flow in the immediate but also for the long-term, here are 10 essentials.

Know your break-even figure

You need to know what number you need to reach each month to cover all of your outgoings. Once you know this, you can make better spending decisions and keep your cash flow at its optimal level.

Create a budget and stick to it 

While profit is important, you also need to focus on spending. Create a budget to ensure that you’re making more on each sale than you’re spending – this can help you be more mindful about where your money is going and it can help you make impactful changes.

Build a cash reserve

Set aside any excess money you make every month into a business savings account. Financial experts recommend keeping 3-6 months’ operating expenses in a cash reserve, but you can decide how much you want to keep available.

Automate your bookkeeping 

Using software such as Xero and QuickBooks can help you improve your cash flow. You can send out invoices immediately, get your clients to pay via Direct Debit, reconcile payments easily, and generate reports with a click of a button.

Offer discounts for early payments

If you have certain clients who pay late and miss payments, offer them a 2-5% discount if they pay early. Not only does this incentivise them to pay, but it also ensures that you don’t suffer from dips in your cash flow too. Win-win.

Negotiate extended payment deadlines with vendors 

It’s good to set up extended payment deadlines in the event that you can’t pay what you owe vendors right away. For example, you could negotiate a 60-day turnaround for all payments or include a clause in the agreement that allows later payments a certain number of times in the year. While it may not be needed, it is good to be prepared in case you ever need to use this option.

Consider financing (when it makes sense)

Your focus should be building up a cash reserve for emergency situations like the Coronavirus crisis. This means that, in a situation where you have unexpected expenses or you need a large sum, you should consider short- or long-term financing options instead.

Consider leasing supplies, equipment, and real estate instead of buying

While leasing may end up being more expensive than buying in the long run, choosing to lease supplies, equipment, and real estate for a certain amount of time will help you to maintain a steady cash stream for day-to-day operations.

Seek advice from an accountant 

The best way to improve your cash flow is to seek expert advice. Whether it’s getting an accountant to advise you on spending and saving or hiring them to completely manage your financial matters, they will help you make the right financial decisions. After all, you have to spend money to make money!

Improve your inventory

What is your inventory turnover? Surprisingly, there could be a lot of cash tied up in your inventory so check your inventory regularly. Are you buying too much? If so, sell it at a discount and start buying less of it. This is something that your accountant can help you figure out.

While it’s obviously very important to improve your cash flow right now (thanks Coronavirus), it is also essential for your business to have a healthy cash flow all year round. Keeping a robust cash flow takes vigilance, but it will help protect your business during turbulent times, not to mention, it will also help you sleep soundly.